Five Financial Advice From Our Grandparents’ Era That Still Make Sense!
The pearls of wisdom that our grandparents share come from their love and years of experience. It is no wonder that a person who spends a lot of time with their grandparents grows up to be well-rounded adults. Their years of experience can teach us numerous lessons, including that on managing finances.
Some of the advice that our financial advisors give out today is similar to the ones that our grandparents tell us all the time. Here’s a look at five financial advice from our grandparents’ generation that makes sense even to this day and age!
Save Before You Spend
Well, it is easy to treat yourself to some luxuries as soon as you get your salary into your account. And then start the routine of paying out your bills and clearing dues. The final step of spending all that you earned being savings is the lifestyle most of us live. However, it is ideal to do things the other way round. Meaning, you start dividing your funds by saving money first and then spending on the essentials and clearing out bills before you splurge.
This way, you can cut out on unnecessary spendings, save more, and lead a waste-free life. No wonder our grandparents had their finances sorted and always have some money to spare every time their loving grandchildren visit.
Don’t Put All Your Eggs in the Same Basket
It is easy to do some market research and invest all the money in one place. Another lazier way to handle your funds is to let it all sleep in your bank account. So, don’t leave all your eggs in the same basket. If the basket falls, or the market crashes, you lose everything. Instead, split up your funds the wise way and make multiple investments.
Have some money in long-term investments, some in the short term, some in mutual funds. You could also invest some in stocks, some as assets, and some as liquid cash. This way, you have money for all your emergencies, and if there is a crash in one of the markets, you do not go bankrupt. Instead, your other savings and investments will come to your rescue. You can count on them until the market recovers, and your investments start yielding profits again.
Plan for Your Retirement
It might seem unnecessary to start saving for retirement from the time you start earning. However, if you do it, you are sure to have a comfortable and stress-free retirement. Imagine adding $100 a month besides the retirement funds to a savings jar, and how much it would amount to at the end of 25 years. It would be more than enough to ensure an inflow of income even in your retirement days. And the best part is, you have the breathing time to start investing in your actual retirement fund. You could use this money to retire earlier than your peers or move to a different country for retirement.
For instance, consider the current pandemic situation. With so many job losses, some people cannot save for their retirement. Instead, they are living out on their savings. This could be you too. And having a backup fund for your retirement days will only ensure that you have a comfortable life at all times.
Earn More to Save More
This might look like the most obvious and no brainer advice. But if you think about it, it motivates you to keep working and thereby increase your savings.
Sign up for a side gig when you still can. This will ensure you have an additional income source. That money could go entirely go into your savings besides your regular income!
Early Bird Gets the Worm!
Make savings a habit from a very young age. You should get your children on board the savings bandwagon too when they are as young as ten years old. When they make it a habit to start saving even if it is in a piggy bank, the habit will go a long way.
Remember, you can never teach an old dog a new trick. So, always get your little one started young, and they would experience financial stability from a very young age. This would be a win-win for you as your retirement funds wouldn’t drain out on supporting your child even after they grow up into adults, just because they do not know how to save!
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